Stocks
Merck Stock Downgraded by UBS on Valuation Concerns
UBS downgraded Merck & Co.'s stock rating to neutral from buy and set a price target of $150.00, citing recent performance and current valuation.
The firm maintained its $150 price target while changing its rating. UBS analyst Matthew Weston said the downgrade follows strong share price performance and renewed investor confidence in Merck's three divisional model.
UBS raised its 2026 core earnings per share estimate by 3% but lowered sales forecasts for 2027 and beyond by an average of 2%. This aligns with broader analyst sentiment, as 13 analysts have revised their earnings downwards for the upcoming period.